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High Speed Rail Project in California

News & Blog 2017 July High Speed Rail Project in California
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High Speed Rail Project in California

Posted By Allen, Semelsberger & Kaelin LLP || 10-Jul-2017

Despite efforts to derail the high-speed rail project, a Sacramento County Superior judge denied a preliminary injunction, after having previously denied a temporary restraining order a month earlier, which would have blocked the state from spending nearly $1.25 billion to build the controversial 119-mile segment of track in Central Valley. Judge Raymond Cadei stated that blocking the funding would potentially harm Californians and the state.

Back in 2008, a $10 billion bond sale measure was approved by voters, though several conditions were attached to it, which need to be met before it is spent. For example, the bond act requires that any segment of railing that is to be started must be “suitable and ready” for high-speed train operators. Further legislation clarified that a portion of the previously approved legislation authorized $1.1 billion for transit improvements for the project.

The plaintiffs believe the legislation is being given carte blanche to change ballot measures after approval. Only voters should be allowed to make such changes. Although Judge Cadei allowed the project to receive a portion of the revenue bonds, he rejected the rail authority’s argument regarding the right to change and clarify the meaning of the bond act.

The high-speed rail project will keep moving forward and, with Prop 1A bonds and revenue from the state’s cap-and-trade markets, it is possible the first segment will be built and opened in the near future.

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